Where are today’s accounting firms in terms of diversity, equity and inclusion?

As we approach the second anniversary of George Floyd’s murder — often cited as the tipping point in awareness and action around diversity, equity and inclusion initiatives — it is worthwhile to look at how far accounting firms have progressed in their efforts to create more inclusive cultures.

To find out, the Association for Accounting Marketing, Clearly Rated and bbr companies collaborated on a survey of accounting marketers and business developers in the spring of 2022. While a much deeper dive is still needed, the results of this survey do point to some progress, as well as areas where much more effort needs to take place. In fact, nearly all of those that responded (90%) are looking for examples of what other firms have done, so this survey is a great start.

Of the 145 responses we received, over half have more than 10 years of experience, and they were evenly distributed among firms with fewer than 100 employees (25%), 100-249 employees (38%) and more than 250 employees (37%). The overwhelming majority, 87%, were white, and 81% identified as female. Millennials accounted for 49% of the respondents, while 40% are Gen X and 11% are baby boomers. Additionally, 13% identified as LGBTQ+. 

DEI progress

Since one of our goals was to create a baseline of information to which we can compare in the future, the lion’s share of questions in the survey were about where firms are in their DEI journey. The results are insightful and point to some trends among those in accounting marketing and business development. 

• When asked if their firm has taken any action on DEI, the answers are split down the middle (51% yes and 49% no). Larger firms (250+) are more likely to have taken some sort of direct action (66%) and have a DEI strategy (61%) compared to 51% overall. Those who work for firms with a DEI strategy in place have higher net promoter scores (a measure of how likely a client — or, in this case, an employee — is to recommend a firm), at 59% versus 50% for those without a DEI strategy, indicating they are happier employees.
• The overall NPS for respondents to this survey is 61%, which is not a bad score. However, when we dig a bit deeper, we see that the NPS among white respondents is 65% but the NPS among non-white respondents is much lower, at 37%. Overall firm NPS also increases with age. NPS among millennials is 54%, Gen X came in at 69%, and Baby Boomers’ NPS is 86%. 
• Only 17% of respondents feel their firm is ahead of others regarding DEI initiatives, with 43% saying their firm is on par with others, and 40% feeling behind. Those that feel behind break out as follows by firm size: fewer than 100 employees, 59%; 100-249 employees, 43%; and more than 250, 29%. Those that feel ahead (74% NPS) or on par (75% NPS) are much more satisfied with their firm than those that feel behind (29% NPS). In general, smaller firms are placing less emphasis on DEI-related initiatives, are less likely to have a formal strategy, and fewer indicate that progress has been made in this area. 
• The most common owner of DEI initiatives is human resources at 62%. However, of those that feel their firm is ahead of others, 67% indicated their firm leadership is the primary owner of DEI, pointing to the positive influence that leadership involvement has on DEI progress. 
• Half of firms are offering DEI training, but only 27% of those make attendance mandatory. Meanwhile, 89% of firms with a formal DEI strategy are offering training, 43% of which indicate these learning sessions are required. Most of those that do offer DEI training only do so annually or less frequently (36%); however, those that feel their firm is ahead of others are offering training monthly or weekly (40%). The most common training topic is unconscious bias at 94%, followed by the meaning of DEI. at 81%, and cultural awareness and belonging, at 67%. 
• Just over half (55%) believe in their firm’s DEI strategy, but that number increases for larger firms (71%). Additionally, 62% feel their firm leadership is engaged and supportive of their overall DEI strategy, yet those that feel behind other firms are much less likely to agree with this (28%). 
• Among those who have knowledge on this topic, less than half agree their firm is allocating enough budget (46%) and time (48%). When contrasted with the 95% who think it is important to have a clear emphasis on DEI progress, this is concerning. Additionally, firms that feel ahead of others say there is an adequate amount of budget (93%) and time (94%) set aside for DEI. 
• While most respondents indicated their firm has made some (47%) or significant (21%) progress in reaching a more diverse pool of candidates, blind hiring and pay equity are areas where a good deal of improvement needs to be made based on the quantity of “don’t know” answers (57% on blind hiring and 50% on pay equity). This is a clear sign of why it is important to talk about internal DEI initiatives with your team. 
• 37% have hired an outside DEI consultant, and 71% of those have called upon this resource for training and 58% for assistance in setting up a DEI program.  
• Only 24% indicated their firm has signed the CEO Pledge, while an additional 44% don’t know. Those at larger firms are much more likely to indicate their firm has signed the pledge (38% versus 0% among firms with less than 100 employees). 

Firm perceptions of DEI in practice

While having a DEI strategy in place is a great start, unless it is consistently applied and leads to lasting change, it is simply lip service. When asked to share what their firm is doing in terms of attracting, keeping and promoting a diverse slate of employees, firms show less progress. 

• Gender equity has been an area of much more focus over the years, and it shows in these responses, with 92% saying that their firms display gender diversity among employees, but fewer (73%) agree their firm leadership shows gender diversity. 
• In contrast, only 54% agree their firm displays racial or ethnic diversity among all employees and 27% indicate their leadership is racially and ethnically diverse. Those that feel their firm is ahead of the curve are much more likely to agree there is racial/ethnic diversity in their leadership (53%), especially compared to those that feel on par (26%) and behind other firms (22%). 
• Fewer respondents know if their firm provides the same level of advancement opportunity to their gender-diverse LGBTQIA+ employees as their straight ones. This is particularly true of smaller firms (25% don’t know) and speaks to a lack of focus on this area when compared to other aspects of DEI.
• Additionally, 28% don’t know if their firms provide opportunities to those with physical or mental disabilities.

Discrimination and belonging

When it comes to retention, particularly in today’s marketing and business development job market, creating a sense of inclusion is vitally important. If marketing and business development team members feel they do not belong, or much worse, feel discriminated against, not only will you lose future leaders, but even those that simply observe these activities will be much more likely to turn into firm detractors. 

• Those at firms with 250+ employees are more likely to have experienced discrimination (22% vs. 13% overall). 
• People of color (45%) and female (25%) respondents are more likely to say they have witnessed discrimination at their firms (22% overall) as well as experienced it firsthand (33% and 15% respectively, versus 13% overall).
• 30% answered that they only sometimes or never feel they belong at their firm. Those that feel their firm is behind others in terms of DEI are much less likely to report they always feel they belong (52% always versus 79% of those that feel their firm is on par or ahead of others).
• When asked if their compensation package is fair compared to others at the firm who do similar work, 83% felt it was.
• 75% feel their firm management only sometimes or never shows that diversity is important through their actions.

DEI in marketing

While most DEI efforts are more internally focused, it is also important to project a sense of diversity and equity in external marketing efforts.

• 65% of respondents are incorporating DEI into their marketing efforts; however, the number is much higher (88%) among those with a formal DEI strategy.
• Nearly all (99%) are including DEI in their social media efforts, where 88% believe it is effective, followed by DEI on their company website, where fewer (83%) feel it is making a difference. 

Like any cultural shift, creating a more diverse, equitable and inclusive firm requires buy-in and support from firm leaders and a commitment to focus on the necessary changes. Based on these results, positive movement is happening, but we still have a long way to go.
The team that sponsored this survey will be presenting its findings on an AAM webinar on June 22 at 2 p.m. Further details and registration information will soon be available on the AAM website.